Business Degree Marketing Principles 2 — Questions and Answers
Question 1: What is 'penetration pricing'?
- Setting a high price to signal premium quality
- Setting a low initial price to quickly gain market share (Correct answer)
- Pricing products just below competitor prices
- Adjusting prices based on demand fluctuations
Correct answer: Setting a low initial price to quickly gain market share
Penetration pricing sets a low introductory price to attract customers and capture market share quickly, with plans to raise prices later.
Question 2: What is a 'SWOT analysis' used for in marketing?
- Calculating return on marketing spend
- Assessing internal strengths/weaknesses and external opportunities/threats (Correct answer)
- Forecasting quarterly sales revenue
- Mapping the customer purchase journey
Correct answer: Assessing internal strengths/weaknesses and external opportunities/threats
SWOT analysis evaluates an organization's Strengths, Weaknesses, Opportunities, and Threats to inform strategic decision-making.
Question 3: What is 'content marketing'?
- Paying influencers to promote products on social media
- Creating and distributing valuable content to attract and retain a target audience (Correct answer)
- Broadcasting TV commercials during peak viewing hours
- Placing banner ads on high-traffic websites
Correct answer: Creating and distributing valuable content to attract and retain a target audience
Content marketing focuses on creating relevant, valuable content to attract a defined audience and drive profitable customer action.
Question 4: In the product life cycle, which stage is characterized by rapid sales growth and rising profits?
- Introduction
- Growth (Correct answer)
- Maturity
- Decline
Correct answer: Growth
The growth stage features rapidly increasing sales, expanding market share, and growing profits as the product gains wider acceptance.
Question 5: What does 'positioning' mean in marketing?
- Placing products on store shelves at eye level
- Designing how a brand or product is perceived relative to competitors in consumers' minds (Correct answer)
- Selecting the geographic markets to enter
- Negotiating shelf space with retailers
Correct answer: Designing how a brand or product is perceived relative to competitors in consumers' minds
Positioning is the strategic process of defining how a brand occupies a distinct place in the target customer's mind relative to competitors.
Question 6: What is 'push' strategy in marketing channel management?
- Using social media to pull customers to a website
- Promoting a product directly to consumers to create demand that pulls it through the channel
- Pushing promotional efforts toward intermediaries like wholesalers and retailers to stock the product (Correct answer)
- Reducing prices to push slow-moving inventory
Correct answer: Pushing promotional efforts toward intermediaries like wholesalers and retailers to stock the product
A push strategy directs marketing efforts at channel intermediaries to convince them to stock and sell the product to end consumers.
Business Degree Marketing Principles 2
What is 'penetration pricing'?